Should You Retain EverQuote (EVER) Stock in Your Portfolio?
EverQuote, Inc. EVER has been in investors' good books on the back of revenue growth within the health direct-to-consumer agency, higher quote request volume and innovating advertiser products and a robust capital position.
Growth Projections
The Zacks Consensus Estimate for EverQuote’s 2023 and 2024 earnings implies a year-over-year increase of 2.6% and 59.5%, driven by 5.3% and 20.8% higher revenues of $425.59 million and $514.15 million, respectively.
Earnings Surprise History
EverQuote has a decent earnings surprise history. Its bottom line beat estimates in each of the last four quarters, the average being 39.08%.
Zacks Rank & Price Performance
EverQuote currently carries a Zacks Rank #3 (Hold). In the past year, the stock has lost 18.9% compared with the industry’s decrease of 18.3%.
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Business Tailwinds
EverQuote's top line has been increasing over the years owing to the solid performance of automotive and other insurance marketplace verticals.
EverQuote also remains focused on rapidly expanding into new verticals. Non-auto insurance revenues are likely to gain from strong execution in the health insurance vertical and specifically from direct-to-consumer agency policy sales.
Growth in overall consumer quote requests should benefit EverQuote as it reflects the insurer’s success in generating consumer traffic and the potential to increase the share of insurance-shopping consumers.
Variable marketing margin (VMM) is likely to gain from strong revenue growth within the health direct-to-consumer agency during the annual health open enrollment period. This is expected to drive an improvement in VMM operating point for the business.
Increasing consumer traffic, higher quote request volume and innovating advertiser products and services will continue to boost revenues.
For the first quarter of 2023, EVER expects revenues in the range of $101-$105 million, variable marketing margin of $31.5-$33.5 million and adjusted EBITDA in the band of $2-$4 million.
EverQuote boasts a debt-free balance sheet with cash balance improving over the last three years. The insurer aims to meet any future debt service obligations with the existing cash and cash equivalents and cash flows from operations, which are expected to be sufficient to fund operating expenses and capital expenditure requirements for at least the next 12 months, without considering liquidity available from the revolving line of credit.
Stocks to Consider
Some better-ranked stocks from the multi-line insurance industry are James River Group Holdings, Ltd. JRVR, Old Republic International Corporation ORI and CNO Financial Group, Inc. CNO, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
James River’s earnings surpassed estimates in each of the last four quarters, the average earnings surprise being 17.20%. In the past year, JRVR has lost 18.9%.
The Zacks Consensus Estimate for JRVR’s 2023 and 2024 earnings implies a respective year-over-year increase of 16.2% and 13.9%.
Old Republic International’s earnings surpassed estimates in three of the last four quarters and missed in one, the average earnings surprise being 21.89%. In the past year, ORI has lost 6.4%.
The Zacks Consensus Estimate for ORI’s 2023 and 2024 earnings has moved 7.3% and 6.8% north, respectively, in the past 60 days.
CNO Financial’s earnings surpassed estimates in three of the last four quarters and missed in one, the average earnings surprise being 14.15%. In the past year, CNO has lost 13.6%.
The Zacks Consensus Estimate for CNO’s 2023 and 2024 earnings implies a respective year-over-year increase of 15.4% and 7.1%.
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CNO Financial Group, Inc. (CNO) : Free Stock Analysis Report
EverQuote, Inc. (EVER) : Free Stock Analysis Report
Old Republic International Corporation (ORI) : Free Stock Analysis Report
James River Group Holdings, Ltd. (JRVR) : Free Stock Analysis Report
